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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 999
Experience:  Certified Public Accountant
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Are Utility Trailers sold in Tn. to out of state buyer

Customer Question

Are Utility Trailers sold in Tn. to out of state buyer subject to Tn. sales tax ??
JA: The accountant will know how to help. Please tell me more, so we can help you best.
Customer: Sold by a Lic. Tn. Trailer Dealer.
JA: Is there anything else the accountant should be aware of?
Customer: No
Submitted: 1 month ago.
Category: Tax
Expert:  Mark Taylor replied 1 month ago.

Hi, my name is Mark. I will be happy to help you with your questions. Are the Trailers being sent to the out of state customer?

Customer: replied 1 month ago.
my Trailer lot in Tn. customer picks trailer up @ my lot in less than 3 days
Expert:  Mark Taylor replied 1 month ago.

So you are not shipping the trailers to the out of state customers?

Customer: replied 1 month ago.
They pick up @ my lot
Expert:  Mark Taylor replied 1 month ago.

Since they are picking up the trailers are your lot I believe they are required to pay sales tax. Please give me a moment to verify.

Expert:  Mark Taylor replied 1 month ago.

Are the trailers required to be registered and titled with the state of Tennessee?

Customer: replied 1 month ago.
No
Expert:  Mark Taylor replied 1 month ago.

You should be collected sales tax on these sales.

If the trailer is of the type that falls within the registration and titling requirements of Tennessee law, the taxpayer is not required to collect tax when the purchaser will, within three calendar days of purchase, remove the trailer to another state where it will be registered and used. However, if the trailer is of the type exempt from the registration and titling requirements of Tennessee law, the taxpayer should collect tax even though the purchaser intends to remove the trailer from Tennessee.

Expert:  Mark Taylor replied 1 month ago.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.

Customer: replied 1 month ago.
Thank You
Expert:  Mark Taylor replied 1 month ago.

It was my pleasure.

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